Pakistan expects 11% increase in car sales

The automobile sector offered 431 cars an average every day in fiscal year 2012, showing an increase of 11 per cent over the previous year, but business is expected to slowdown during the current fiscal year. Overall sales stood at a four-year high of 157,325 units during the year under review as compared to the production of 127,944 units during the fiscal year 2011, official sources revealed. The year’s first boost came in the budget when government removed special excise duty of 2.5 per cent on imported and manufactured vehicles coupled with reduction of general sales tax to 16 per cent from 17 per cent, according to Engineering Development Board (EDB) document. The second turbo charger was the yellow cab scheme offered by the Punjab government, under which the provincial government aimed to deliver 7,500 cabs to successful applicants during July to December 2011. Details show Toyota Corolla kept the throne of biggest selling car with 46,207 units sold followed by Suzuki Mehran with 35,131 units. The year also saw an end to the journey of Daihatsu Coure and Suzuki Alto while Indus Motor Company (IMC) felt the new global mode of Coure was not feasible cost-wise to assemble in Pakistan while Pak Suzuki followed its parent company’s decision of pulling the plug on the Alto. EDB document revealed Pak Suzuki Motor Company was the prime beneficiary of the taxi scheme and witnessed the highest growth of 46 per cent on yearly basis. Mehran and Bolan-the two vehicles used in taxi scheme witnessed an impressive growth of 46 per cent and 69 per cent respectively. Swift, the latest addition to the family also gained traction and sold 7,040 units against the preceding fiscal year’s 4080 units. IMC witnessed 6 per cent growth led by Toyota Corolla and Hilux. New variants of Corolla launched by the company and introduction of CNG-fitted vehicles acted as a catalyst in this growth. Diahtsu Cuore’s sales plummeted to 3,857 units while the company’s plant stopped production for good in May. Honda Atlas witnessed a year to forget, the document said adding the luxury car assembler sales plummeted due to problems in its supply chain since October because of floods in Thailand from where parts are imported and then locally assembled. From gulftoday